For more information on Marketplace Facilitators and Marketplace Sellers (NRS 372.746 through NRS 372.754) please visit our FAQs page.
Marketplace
A
Marketplace is any physical or electronic presence, including but not limited
to a store, booth, Internet website, catalog, television or radio broadcast, or
a dedicated sales software application, where a Marketplace Seller sells or
offers for sale, tangible personal property.
Marketplace Facilitators
“Marketplace Facilitator” means a person, including
any affiliate of the person, who directly or indirectly, does one or
more of the following to facilitate a retail sale:
(1) Lists, makes
available, or advertises tangible personal property for sale by a Marketplace Seller
in a Marketplace owned, operated, or controlled by the person;
(2) Facilitates the sale
of a Marketplace Seller’s product through a Marketplace by transmitting or
otherwise communicating an offer or acceptance of a retail sale of tangible
personal property between a Marketplace Seller and a purchaser in a forum
including a shop, store, booth, catalog, internet site or similar forum;
(3) Owns, rents,
licenses, makes available, or operates any electronic or physical
infrastructure or any property, process, method, copyright, trademark or patent
that connects Marketplace Sellers to purchasers for the purpose of making
retail sales of tangible personal property;
(4) Provides a Marketplace
for making retail sales of tangible personal property, or otherwise facilitates
retail sales of tangible personal property, regardless of ownership or control
of the tangible personal property that is the subject of the retail sale;
(5) Provides software
development or research and development activities related to any activity
described in this subsection, if such software development or research and
development activities are directly related to the physical or electronic Marketplace
provided by a Marketplace Provider;
(6) Provides or offers
fulfillment or storage services for a Marketplace Seller;
(7) Sets prices for the
sale of tangible personal property by a Marketplace Seller;
(8) Provides or offers
customer service to a Marketplace Seller or the customers of a Marketplace Seller,
or accepts or assists with taking orders, returns or exchanges of tangible
personal property sold by a Marketplace Seller; or
(9) Brands or otherwise
identifies sales as those of the Marketplace Facilitator;
AND Directly or
indirectly, does one or more of the following to facilitate a retail sale:
(1) Collects the sales
price or purchase price of a retail sale of tangible personal property;
(2) Provides payment
processing services for a retail sale of tangible personal property;
(3) Charges, collects or
otherwise receives selling fees, listing fees, referral fees, closing fees,
fees for inserting or making available tangible personal property on a Marketplace
or other consideration from the facilitation of a retail sale of tangible
personal property, regardless of ownership or control of the tangible personal
property that is the subject of the retail sale;
(4) Through terms and
conditions, agreements or arrangements with a third party, collects payment in
connection with a retail sale of tangible personal property from a purchaser
and transmits that payment to the Marketplace Seller, regardless of whether the
person collecting and transmitting such payment receives compensation or other
consideration in exchange for the service; or
(5) Provides a virtual
currency that purchasers are allowed or required to use to purchase tangible
personal property.
**Marketplace Facilitators include,
but are not limited to, consignment
stores, auctions, food delivery services such as “Uber Eats” and online
Marketplaces.
The Marketplace
Facilitator must register with the Department if they meet the following
criteria in the previous or current calendar year.
(1) had cumulative gross receipts from Nevada
retail sales made to customers in this State, on its own behalf or on behalf of
a seller, which exceeded $100,000; or
(2) made or facilitated 200 or more separate
Nevada retail sales transactions, on its own behalf or on behalf of a seller.
Marketplace Sellers
A person who has an agreement with a Marketplace Facilitator and makes retail sales of tangible merchandise through a Marketplace owned, operated, or controlled by a Marketplace Facilitator.
Registration Requirements
A Marketplace Facilitator, Marketplace Seller or Remote Seller’s combined Nevada
retail sales are used to determine if the sales threshold is met through all
sources, to include non-Marketplace (direct retail sales) and Marketplace
Nevada retail sales. Effective October 1, 2019, the Marketplace Facilitator,
Marketplace Seller and/or the Remote Seller (no physical presence), must
register to collect and remit sales tax on all of its facilitated Nevada
retail sales and its direct Nevada retail sales when its total of all such
sales exceeds $100,000 or 200 separate transactions in the preceding or current
calendar year.
The sales threshold does not apply to a Retailer, Remote Seller, Marketplace
Seller or Marketplace Facilitator that has a physical presence in this State.
All Retailers with a physical presence in this State must register, collect,
remit and report all sales tax even if the Nevada retail sales threshold is not
met. A retailer with physical presence in this state who makes both Marketplace
and non-Marketplace retail sales must remit and report Nevada sales tax on any
taxable sales on which the Marketplace Facilitator does not collect Nevada
sales tax.
**Please note: If the seller that has no nexus, makes direct sales into
Nevada in addition to those made through the Marketplace and meets the Nevada
retail sales threshold, they must register, collect and remit the Nevada sales
tax on the direct sales made into Nevada.
Sales Through a Marketplace Facilitator
If ALL
Marketplace Facilitators used by the Marketplace Seller are registered with
Nevada to collect Nevada sales tax, the Marketplace Seller does not have to
collect the Nevada sales tax but is still required to be registered with Nevada
pursuant to NRS 372.125 and NRS 374.130 if they have presence (nexus) in Nevada or if they make non-marketplace sales into
Nevada and meet the Nevada retail sales threshold.
The
Marketplace Facilitator must issue a certificate prescribed by the Department to all Marketplace Sellers stating that the Marketplace Facilitator will
register, collect, remit and report all Nevada sales tax. They will also be
responsible for being audited on such facilitated Nevada sales. If you have no
nexus, no direct sales and all sales are made through a registered Marketplace
Facilitator, you do not need to register with the Department for a Sales/Use
Tax permit. The Facilitator will collect and remit the sales tax.
A
Marketplace Facilitator should file a separate Nevada sales tax return under a
subaccount with a separate location number to report all the sales made by the Marketplace
Sellers and facilitated by the Marketplace Facilitator. If you will only be filing one return for all Nevada sales (direct and facilitated) please contact the Department's Call Center at 1-866-962-3707.
EXAMPLE: Seller X is a remote seller (no nexus) and has $200,000 in gross receipts from
Nevada retail sales. Seller X makes all its Nevada sales through a Marketplace Facilitator
that collects Nevada sales tax on the retail sales. Seller X does not need to
register for a Nevada sales tax permit or file a Nevada sales tax return. The Marketplace Facilitator will collect,
remit and report the Nevada sales tax on the Marketplace Facilitator’s Nevada
sales tax return.
Note: Sales tax is calculated based on the
location where the sale is sourced or delivered. Use the
Department’s Sales Tax Map under the Publications tab to calculate the
correct rate. To determine whether a product is subject to Nevada sales tax, use
the Taxability Matrix Under the Streamlined Sales and Use Tax tab.
Opt-Out Provisions
A Marketplace Facilitator and Marketplace
Seller can enter into a written agreement whereby the Marketplace Seller
assumes responsibility for the collection and remittance of the Nevada sales
tax for all Nevada retail sales made by the Marketplace Seller through the
Marketplace Facilitator if all of the following conditions are met:
a) The Marketplace
Facilitator enters into this agreement with ALL Marketplace Sellers
that the Marketplace Facilitator makes or facilitates Nevada retail sales transactions
on behalf of those Marketplace Sellers;
b) All Marketplace Sellers
are currently registered with Nevada and hold a Nevada sales tax permit;
c) The agreement specifies
that the Marketplace Seller is responsible for collecting, remitting and
reporting the Nevada sales tax on all Nevada retail sales made through the
Marketplace Facilitator;
d) The Marketplace
Facilitator maintains notification on its website that Nevada sales tax is
being collected, remitted and reported by the Marketplace Seller; and
e) The Marketplace
Facilitator provides the agreement to the Department prior to facilitating
Nevada retail sales on behalf of the Marketplace Seller.
Upon request of the Department, a Marketplace Facilitator
shall provide to the Department, a report containing the name of each Marketplace
Seller with whom the Marketplace Facilitator has entered into an agreement
pursuant to this section and such other information as the Department
determines is necessary to ensure that each Marketplace Seller with whom the Marketplace
Facilitator has entered into an agreement pursuant to this section, has
obtained a permit pursuant to NRS 372.125 or registered pursuant to NRS
360B.200 and are filing their own returns.
Marketplace Facilitator Certificate of Collection
All
Marketplace Facilitators are required to provide a copy of this certificate to
all Marketplace Sellers who use their forum to facilitate their sales. This
form certifies that the Marketplace Facilitator is registered with the
Department and as of the effective date on the form, will collect and remit
Nevada sales tax on the sales it facilitates on the Marketplace Seller’s
behalf.
Liability Relief for Marketplace Facilitators
Except as otherwise provided in NRS 372.752, if a Marketplace Facilitator collects, remits and
reports the Nevada sales tax on behalf of the Marketplace Seller and any
underpayment of Nevada sales tax has been found after an audit has been
conducted, the Marketplace Facilitator will ultimately be held liable as
provided in NRS 372.752 section 1(a) and (b) unless:
a) The
Marketplace Facilitator provides proof satisfactory to the Department that the
Marketplace Facilitator has made a reasonable effort to obtain accurate
information from the Marketplace Seller about the Nevada retail sale; and
b) The
failure to collect, remit and report the correct Nevada sales tax on the retail
sale was due to incorrect information provided to the Marketplace Facilitator
by the Marketplace Seller.
If a Marketplace Facilitator is relieved of liability
for the collection and remittance of any amount of the sales tax or use tax
pursuant to subsection 1, the Marketplace Seller or purchaser, as applicable,
is liable for the payment of such uncollected, unpaid or unremitted tax.
QUESTIONS?
Contact our Call Center at 866-962-3707